Environmental Fiscal Reform

Project Summary

The project aims to strengthen the capacity of the Ministry of Environment to improve the existing legal and regulatory framework on pollution charges system, promote eco-technologies and improved subsidies in the energy and agriculture sectors which have positive effects on the economic entities and population at large.

It helps to align the management and operational practices of the National Ecological Fund to the best practices in Central and Western Europe in order to ensure a sustainable tool for development and implementation of the environmental protection policies.

Project Goals:

  • Build capacities for implementing environmental fiscal reform (EFR) that will have increased national and global environmental benefits;
  • Support in analysis, elaboration and adoption of selected subsidies, fees, fines, taxes and other appropriate fiscal instruments;
  • Built the capacity of the Ministry of Environment to promote and communicate initiatives on improved environmental protection;
  • Build the capacities of the National Ecological Fund to improve the regulations and operational management of the Fund;
  • Foster better cooperation of different governmental stakeholders on promotion and implementation of environmental protection related initiatives in different sectors;
  • Improve appropriate use of available statistical data for participatory and evidence-based elaboration, analysis, and monitoring of polices.


  • Acknowledgment and acceptance for a qualitative restructuring of the National Ecological Fund through its institutional and legal framework reform;
  • Improved management and operations procedures applied in line with the best European practices ensure a sustainable and improved tool for environmental projects financing;
  • Better practices for environmental protection issues discussion and acknowledgment by different stakeholders (governmental, NGOs, academia);
  • Analysis undertaken on topics that cover the opportunity to improve the existing subsidy system in energy sector as one of the biggest polluter sectors in Moldova.
  • Study on agricultural subsidies and developing proposals for the incentive scheme to promote organic farming was developed and recommendations were made with amendments to the legal framework.
  • A study on organic agriculture was undertaken and proposals for improving the system of agriculture subsidies and amendments of legal framework for greening the existing subsidies in agriculture was elaborated.
  • A market analysis of financial instruments facilitating eco-technologies in the Republic of Moldova was developed.  The study includes the classification of eco-technologies, an analysis of the institutional and legal framework in Moldova, challenges and barriers for the implementation, best practices and financial mechanisms to promote eco technologies.
  • An assessment of the current system of environmental taxes and proposals for reforms of the pollution charge system was developed.
  • Short term and long term options for the new environmental taxes system proposed and assessed in terms of political, economic, environment impact.
  • The new systems for managing packaging, electric and electronic equipment waste were developed;
  • Study visit in Czech Republic on National Ecological Fund issues was organized for representatives of Ministry of Environment, Ministry of Finance and State Chancellery.
  • http://green.gov.md/ website concept and design were developed.
  • Performance budgeting instruments were included in environmental planning activities at central / local levels.


Donor 2012 2013 2014 2015
Global Environment Fund $42,930 $37,369 $163,167 $260,099
$200,000  (in kind contribution for the entire project duration) -
Government of Moldova
$250,000 (in kind contribution for the entire project duration) -
UNDP $21,019 $ 20,237 $ 20,429 $45,127


2012 $ 63,949
2013 $ 57,606
2014 $ 178,918
2015 $ 309,872

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